German asset manager Deutsche Investment has acquired a neoclassical heritage site in Dresden comprising residential and commercial units from property company Quantum Immobilien.
Financial details were not disclosed.
The prestigious Altmarkt Karree complex in the city's historic centre includes 321 residential and 37 commercial units on a gross lettable area of around 39,500 m2.
The deal was struck within the framework of an individual mandate on behalf of an institutional investor focused on sustainable long-term asset ownership. Quantum Immobilien sold the property on behalf of several German superannuation schemes.
The listed complex consists of 24 buildings grouped directly around Altmarkt-Galerie, one of the biggest shopping centres in Dresden.
In combination with the commercial tenants of Altmarkt Karree, the Altmarkt square has evolved into one of the most popular spots for eating out and promenading in Dresden, as well as hosting one of Europe's best known Christmas markets.
After acquiring the property in 2018, Quantum refurbished about a third of the flats, while more than 5,000 m2 of commercial and retail units were relet or had their leases renewed. Some of the units were structurally altered, including the premises of the former Café Prag.
As a result, these units are virtually fully occupied today, according to Quantum. Tenants include retailers such as WMF, Douglas, Apollo Optik and Wilma Wunder.
Enver Büyükarslan, the main shareholder of Deutsche Investment, said: 'The city of Dresden has developed into a key location for our corporate conglomerate, and it is safe to say that we have grown quite fond of its cultural and architectonic diversity.
'This is something we would like to share with our tenants, and so it is important for us to be in close proximity to them. Indeed, our property management team in Dresden is only a few minutes away from Altmarkt Karree, and is well versed in the management of cultural heritage sites.'
Arndt Buchwald, managing director of Quantum said: 'Among the most compelling aspects of the complex, in addition to its diversified cash flow profile, is the prestigious architecture with its ornamental plaster and generously proportioned entrance areas, and these, too, were enhanced through costly upgrades in recent years.
'We are pleased to have found a reliable buyer for this attractive landmark ensemble in Deutsche Investment, and to see our investors benefit from the sound performance of this investment.'
Legal counsel on the buyer side was provided by GÖRG Partnerschaft von Rechtsanwälten; and by Jebens Mensching and Colliers International on the seller side.
